WalletHub Declared Arizona is One of the Best States to Start a Business

The changing economy has many people rethinking their employment situation. If you've been thinking about stepping away from the grind of a 9-to-5 job working for someone else, this could be a good time to start your own business, and Arizona is a great place to do it, according to a new WalletHub study.

Arizona’s Ranking in WalletHub’s Study

In WalletHub’s 2025 Best States to Start a Business report, Arizona came in at number 13 on the list of all 50 states.

This is great news if you've been dreaming of launching a new business here. Arizona is a good place to start your adventure. Factors like our growing reputation for affordability, a supportive regulatory climate, and an expanding workforce are all working in favor of a strong business community.

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How WalletHub Determines the Best and Worst States for a New Business

WalletHub compared all 50 states, using 25 factors. The study looked at startup activity, access to financing, labor costs, office‑space affordability, and the quality of the overall business environment.

If you're thinking about making your dream a reality, you're not alone. Across the U.S., an average of about 5.1 million new businesses are started each year, according to U.S. Census Bureau formation data.

That said, running a business isn't always easy. About 20% fail within the first year, and nearly half don’t make it to year five, based on U.S. Bureau of Labor Statistics survival data.

RELATED: Arizona Cities Shine In 2026 Job Market Report Findings

What Makes a Business Successful

Creativity and hard work, combined with a little luck, can make your business successful. There are many practical considerations, too. Access to capital, hiring a skilled workforce, choosing the perfect location, strong market demand, and the ability to adapt quickly. WalletHub’s criteria paint Arizona in a good light for success on all these factors.

READ: Study Says Arizona is Among Most Stressed States

Where Entrepreneurs Can Get Help in Arizona

If you're thinking about starting a business in Arizona, there are a lot of resources t oget you started.

The Arizona Corporation Commission can help new business owners get registered and compliant. The U.S. Small Business Administration (SBA) provides funding programs, mentoring, and training. The Better Business Bureau offers credibility resources and guidance.

Whether you're starting a technology company, a bakery, a childcare center, a photography business, a doggie daycare, or something else, if you're willing to do your research and work hard, starting your venture in Arizona is a great way begin on the right foot.